WAGE DETERMINATION IN THE DOMESTIC SERVICES SECTOR IN KAHAWA AND GITHURAI ESTATES IN KIAMBU COUNTY, KENYA
Keywords:
Human Capital Investment, Minimum Wages Order, Domestic worker wages and Minimum Wage.Abstract
Purpose: To establish underlying factors that influence wage determination in the domestic service sector in Kahawa and Githurai estates in Kiambu County, Kenya.
Methodology: The study used a descriptive cross-sectional survey design which sought to give the quantitative relationship between the wage and its determinants. Primary data was collected by interviewers using questionnaires from which 367 domestic workers were randomly selected and interrogated. The collected data was coded and quantitatively analysed using robust regression.
Findings: The results of the analysis indicate that education level in years of schooling, work experience in years, type of residence are important factors in wage determination in the domestic services sector. Sex and dwelling of a domestic worker were found not important factors in determining wages.
Unique contribution to theory, practice and policy: The implications of the findings suggest that in an effort to create fairness in the domestic services sector, policies and strategies that are anchored in the social economic characteristics of a domestic worker as well as human capital investment should be considered in determining domestic worker's wages a part from minimum wages which is generally defined and regulated by state law.
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References
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Mincer, J. (1974). Schooling, experience and earnings. New York, National Bureau of Economic Research.
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Siegfried, J.J, White, K.J. (1973). Teaching and publishing as determinants of academic salaries. The Journal of Economic Education, 4(2): 90-99.
Siegfried, John J., White, Kenneth J., Financial rewards to research and teaching: A Case Study of Academic Economists Author, American Economic Review, May 1973, 63, 309-15.
Spiegel, H. W. (1983). The growth of economic thought. New York: Duke University Press.
Smith, W.J. (2001). Estimates of the effects of the education and training on earnings. Fiscal Research Program Report no.54, 1-52.
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Xiao, J. (2001). Determinants of employee salary growth in Shanghai: An analysis of formal education, on-the-job training
, and adult education with a three-level model. The China review, 1(1), 73-110.
Acker, J. (2006). Inequality regimes, gender, class, and race in organizations. Gender and Society, 20 (4), 441-46.
Armstrong, M. (2012).A handbook of human resource management practice, (12th edn.),
London: Kogan Page Publishers.
Bachan, R. (2008). On the determinants of pay of CEOs in UK public sector higher education institutions. Discussion Paper Series, IZA DP No.3858.
Becker, G.S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70(5), 9-49.
Becker, G. S. (1975). Human capital, (2nd ed.). New York: Columbia University Press.
Block, F. (1990). Postindustrial possibilities: A critique of economic discourse. Los Angeles: University of California Press.
Boyd, B. and Salamin, A. (2001). Strategic reward systems: A contingency model of pay system design. Strategic Management Journal22. Busan Korea 27 - 30 October.
Ciscel, D. H., Carroll, T.M. (1980). The determinants of executive salaries: An econometric survey. The Review of Economics and Statistics, 62(1), 7-13.
Dohmen, T.J. (2004). Performance, seniority, and wages: Formal salary, systems and individual earnings profile. Labour Economics, 11(6), 741-763.
Dae-bong, K. (2009). Human capital and its measurement, the 3rd OECD World Forum on Statistics, Knowledge and Policy", Charting progress, Building Visions, Improving life.
Dolton, P. and Makepeace G. (1982). University typology: A contemporary analysis. Higher Education Review, 13(3), pp33-47.
Formby, J.P., Hoover, G.A. (2002). Salary determinants of entry level academic economists and characteristics of those hired on the tenure track. Eastern Economic Journal, 28(4), 509-522.
Fleischhauer, K. J. (2007). A review of human capital theory: Microeconomics. Discussion Paper. University of St. Gallen: Department of Economics.
Forth, J, Millward, N. (2000). The determinants of pay levels and fringe benefit provision in Britain. Discussion Paper No. 171.
Ghana Statistical Service (1999): 2000 population and housing census enumerator's manual (accra). labour market instruments for reducing illegal employment in private households of the elderly (2011). Accra: Ghana Statistical Service.
Gomez-Mejia, L. R., &Balkin, D. B. (2006). Compensation, organizational strategy, and firm performance. Cincinnati, OH: South-Western Publishing.
Gaag, J.V., Vijverberg, W. (1989). Wage determinants in Côte d'ivoire: Experience, credentials and human capital. Economic Development and Cultural Change, 37(20), 371- 381.
Hirsch, B. T. (2006). Wage determination in the us airline industry: Union power under product market constraints. IZA Discussion Papers, No. 2384.
Heckman, J.J., Lochner, L.J. & Todd, P.E. (2008). Earning functions and rates of returns. NBER working paper series, National Bureau of Economics Research, Cambridge, Manchester.
ILO (2009). Decent work for domestic workers. Report IV (1), 99th Session 2009. Geneva: International Labour Organization.
ILO (2010). Decent work for domestic workers, Report IV (1), 99th Session 2010. Geneva: International Labour Conference.
ILO(2011). Decent work for domestic workers. Report IV (2B), 100th Session 2011. Geneva: International Labour Organization.
John Davidson (1989). The bargain theory of wages. Journal of Political Economy, 7, No.1(Dec.,1989):123-126.
Kabubo-Mariara J. (2003). Wage determination and the gender wage gap in Kenya: Any evidence of gender discrimination? African Economic Research Consortium, Research Paper 132.
Kombo, D and Tromp, A. (2006). Proposal and thesis writing: An introduction. Nairobi: Paulines publications Africa.
KUDHEIHA, (2011), A rapid assessment of domestic workers in Kenya "Labour Institutions (Regulation of Wages and Terms of Employment) Order, 2007 (Government Notice No. 223, published on 16/11/2007).
Kimenyi, S.M, Mwabu, G., & Manda, D.K. (2006). Human capital externalities and private returns to education in Kenya. Eastern Economic Journal, Vol. 32, No. 3, 493-513.
Krueger, A.B., & Lindahl, M. (2001). Education for growth: Why and forwhom? Journal of Economic Literature, Vol. 39, No.4, 1101-1136.
Masibigiri, V., & Nienaber, H. (2011). Factors affecting the retention of generation X public servants: An exploratory study. SA Journal of Human Resource Management/SA.
Maloa, F. (2011). Determinants of employee compensation in an organization: An exploratory study. Master thesis, University of South Africa.
Menard, S. (1995). Applied logistic regression analysis. Thousand Oaks: Sage University paper series on quantitative applications in the social sciences, 07-106.
Mincer, J. (1975). Education, experience and distribution of earnings and employment: An Overview, in Juster, F.T. (ed.), education, income and human behavior. New international. Journal of Academic Research in Economics and Management Sciences March 2014, Vol. 3, No. 2 ISSN: 2226-3624 91 www.hrmars.com.
Mugenda, O.M, A. G, Mugenda (2003). Research Methods: Quantitative and qualitative Approaches, Nairobi: ACT press.
Muturi.B.(2014). Salarydeterminants for higher institutions of learning in Kenya. International Journal of Academic Research in Economics and Management Sciences March 2014, Vol. 3, No. 2.
Muller, C, Nordman, C. (2008). Task organization, human capital and wages in Moroccan exporting firms. CREDIT Research Paper No. 08/12.
Mariara, J.K., &Mwabu, D.K. (2007). Determinants of school enrolment and education attainment: Empirical evidence from Kenya. South African Journal of Economics, Vol. 75, No.3, 572-593.
Mincer, J. (1974). Schooling, experience and earnings. New York, National Bureau of Economic Research.
Nickell, S, Wadhwani, S. (1990). Insider forces and wage determination. The Economic Journal, 100(401), 496-509.
Omolo, O.J, Akoten, lEandOyugi, L.N (2009). The viability of increasing minimum wages in Kenya in 2009, IPAR Discussion Paper Series, No. 110/2009, Nairobi.
Omolo, O.J. (2010). The dynamics and trends of employment in Kenya. IEA research Paper series No 112010, Nairobi.
Omolo, J. (2015). Effect of human capital investment on organizational performance of pharmaceutical companies in Kenya. Global Journal of Human Management.Vol.3, No.6, pp.1-29, November 2015.
Omolo, O. J, (2010). Ripple effects of minimum wages and the response of labour markets in kenya unpublished PhD thesis. Kenyatta University.
Pfeffer, J, Davis-Blake, A. (1987). Understanding organizational wage structures: A resource dependence approach. The Academy of Management Journal, 30(3), 437-455.
Pigou, A.C. (1949). Mill and the wages fund. The Economic Journal, Vol. 59, No. 234. pp.171-180.
Republic of Kenya (1993). Economic Survey. Nairobi: Government Printer.
Republic of Kenya (1994). Economic Survey. Nairobi: Government Printer.
Republic of Kenya (1996). Economic Survey. Nairobi: Government Printer.
Republic of Kenya (2005). Wage Guidelines. Nairobi: Ministry of Finance.
Republic of Kenya (200 I). Economic Survey. Nairobi: Government Printer.
Republic of Kenya (2007a). Vision 2030 strategy for national transformation: accelerating equitable economic and social development for a prosperous Kenya. Nairobi: Government Printer.
Republic of Kenya (2007b). The labour institutions Act (2007), Kenya Gazette Supplement No. 108 (Act No. 12). Nairobi: Government Printer.
Republic of Kenya (2010). Economic survey. Nairobi: Government Printer
Republic of Kenya (2013). Second medium term plan, 2013-2017: Kenya vision 2030: transforming Kenya: Pathway to devolution, Socio-Economic Development, Equity and National Unity. Nairobi: Government Printer.
Razavi, S. (2007): The political and social economy of care in a development context: conceptual issues, research questions and policy options, gender and development programme, Paper No. 3 (Geneva, United Nations Research Institute for Social Development).
Severine, D. and Lila, S. (2009). An Introduction to the human development and capability approach, freedom and agency, London, EarthScan.
Siegfried, J.J, White, K.J. (1973). Teaching and publishing as determinants of academic salaries. The Journal of Economic Education, 4(2): 90-99.
Siegfried, John J., White, Kenneth J., Financial rewards to research and teaching: A Case Study of Academic Economists Author, American Economic Review, May 1973, 63, 309-15.
Spiegel, H. W. (1983). The growth of economic thought. New York: Duke University Press.
Smith, W.J. (2001). Estimates of the effects of the education and training on earnings. Fiscal Research Program Report no.54, 1-52.
The 2009 Kenya Population and Housing Census (Kenya National Bureau of Statistics, 2010).
White, G, Druker J. (2013). Reward management: A critical text. Routledge. Workers in the shadows: Abuse and exploitation of child workers in Indonesia, 2009.
Wambugu, A. (2003). Essays on earnings and human capital in Kenya (PhD thesis). Goteborg University, Gothenburg, Sweden.
Xiao, J. (2001). Determinants of employee salary growth in Shanghai: An analysis of formal education, on-the-job training
, and adult education with a three-level model. The China review, 1(1), 73-110.
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Published
2018-11-09
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Okemwa, J. M., & Korir, D. (2018). WAGE DETERMINATION IN THE DOMESTIC SERVICES SECTOR IN KAHAWA AND GITHURAI ESTATES IN KIAMBU COUNTY, KENYA. International Journal of Economics, 3(2), 1 – 22. Retrieved from https://iprjb.org/journals/index.php/IJECON/article/view/766
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